Journal entry for transfer of closing stock is - Closing Stock A/c Dr. To Trading A/c
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False
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True
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False
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Solution
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The given journal entry to transfer closing stock is correct as the closing stock account which is to be debited is done correctly and trading account has been credit correctly.
Closing stock being asset of the firm is debited because asset are to be debited during a journal entry. Moreover, closing stock is related to sale and any item related to sale is usually credited in trading account and thus trading account has been credited correctly.
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